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UtilityWeek 5th August 2016

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utILItY WEEK | 5th - 11th August 2016 | 11 Policy & Regulation 2014 2015 2016 government's move, and highlighted Clark's statement voicing support for new nuclear. However, he did warn that if the delay extends beyond autumn, as the previous expected timeline of events would have put the EDF final investment decision, there could be danger to future energy projects, and to other UK infrastructure projects. "If this period is prolonged, it is not just that this project will be undermined but eve- rything in terms of infrastructure, due to a lack of confidence," he says. "We need clar- ity as soon as possible." Labour shadow energy minister Barry Gardiner, on the other hand, slammed the government for the move, saying: "The Tories are in chaos." He attacked the delay as "an appalling signal to send and a humiliat- ing diplomatic move" following the vote to leave the EU. The unions have taken a similarly hard line against the government. "Bewildering and bonkers" were the terms used by GMB national secretary for energy Justin Bowden, while Prospect deputy general secretary says the move is "incomprehensible". The fear is that investor confidence will be undermined in infrastructure projects across the UK as a whole, not because of the delay itself but because it was announced just moments aer the fraught and "knife edge" decision to finance Hinkley was made by the EDF board. MacNeil says the government has le EDF "red faced", while Bowden says it could put at risk projects such as HS2 and the expan- sion of Gatwick or Heathrow. The UK historically has a woeful record in backing big infrastructure projects, oen hitting them with sudden U-turns or policy changes at critical moments. Recent major projects, such as the 2012 Olympics, HS1 and the Thames Tideway Tunnel, had begun to redress the balance. The latest delay to Hinkley Point C, this time from Whitehall, could do severe dam- age to this partially restored reputation. Hinkley Point C has so far proved to be a controversial and difficult project, plagued by delays and drama. Just when the final curtain appeared to be coming down with a decision being made, the government has unexpectedly decided to extend the saga's run time. At least until the autumn. "The UK needs a reliable and secure energy supply and the government believes nuclear energy is an important part of the mix. The government will now consider carefully all the component parts of this project and make its decision in the early autumn." Business and energy secretary Greg Clark "Greg Clark has reiterated government support for new nuclear and it is understandable for the new [BEIS] team to take their time, we just need that period is as short as possible." NIA chief executive Tom Greatrex "I would commend the government for their decision to undertake the review. I think it's sensible to do that. However, in the board room [at EDF] there will be a lot of red faces." ECCC chair Angus MacNeil "This delay could deter the investors… This is an appalling signal to send and a humiliating diplomatic move." Shadow energy secretary Barry Gardiner "Theresa May's decision to review the go-ahead on Hinkley Point C is bewildering and bonkers." GMB national secretary for energy Justin Bowden £18bn Construction costs. £92.50/MWh Agreed strike price. 3.2GW generating capacity. 7% total number of uK homes that could be supplied by hinkley Point C. 2025 Estimated completion date. 10 yrs Estimated construction time. Two Number of EPR reactors which will be built. 5,600 people Peak number of people on site. 900 Permanent jobs that would be created. 175 hectares size of the hinkley Point C con- struction site. KEy NUMBErs Leadsom and Defra – turn to page 12 to read more on the new environment secretary Mar 2016: EDF's chief financial officer quits. Jul 2016: Board member Gerard Magnin quits. 28 Jul 2016: EDF board approves final investment decision. UK government puts project on ice. Oct 2013: CfD strike price of £92.50/MWh agreed. Oct 2015: China General Nuclear Power Corporation signs a deal with EDF to take a 35 per cent stake in the project.

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